First Sponsor Group is paying €42.9 million ($62.5 million), or €20 per share, to increase its stake in a listed Netherlands property company NSI by 10.65%.
According to Hong Leong-backed First Sponsor Group, the NTA of the shares to be acquired is €75.6 million.
In a stock exchange announcement released on May 4, First Sponsor Group says it already owns 2.87% of NSI from prior open market purchases.
Upon completion of the acquisition, its total stake in NSI will increase to 13.52%.
First Sponsor Group says the consideration was arrived at based on arm’s length negotiations that took into account NSI's underlying property portfolio, current property market conditions in The Netherlands, historical and current results of NSI, and its historical dividends.
NSI, traded on Euronext Amsterdam, owns a portfolio of 45 office properties majority in Amsterdam, valued at just over €1 billion as at March 31.
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"The acquisition presents a strategic opportunity for the group to acquire a non-controlling but substantial interest in NSI, which has a large portfolio of office properties across The Netherlands, and marks the further extension of the group’s long-term investment in the Dutch real estate market," says First Sponsor Group.
Besides the Netherlands, First Sponsor Group owns and has developed properties in Germany, Italy, Australia and China.
The acquisition will be paid in cash.
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Year to date, NSI shares have dipped 5.86% to close at €17.98 on May 3, valuing the company at €361.2 million.
In the same period, First Sponsor Group shares have dropped 5.83% to last trade at $1.13.
